Consumption Tax in Malaysia

Information about sales and service taxes in Malaysia...

There is no Value added Tax (VAT) in Malaysia, although the Malaysian government plans to introduce a General Service Tax (GST) in the future. instead there are two other types of consumption tax: Service Tax and Sales Tax.

Basic food items and building materials, books, sporting goods, and some tourist items are exempt from tax.

Sales tax: It is applied at a rate of five percent, ten percent and 15 percent to non-essential foodstuffs and building materials. Both alcohol and cigarettes are taxed at 15 percent.

Service tax: The current rate of service tax is six percent. It is imposed on certain goods and services such as food and drink in restaurants and hotels.

  • For more information about sales and service tax: Click here
  • For more information about GST: Click here